Strata Critical Medical, Inc. General form of registration statement for all companies including face-amount certificate companies

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Sep. 30, 2020

The income tax provision consists of the following:


	As of December 31,
	2020		2019

Federal
Current	$	170,647	$	208,612
Deferred		(99,629)		—

State and Local
Current		39,818		—
Deferred		(23,247)		—

Change in valuation allowance		122,876		—

Income tax provision	$	210,465	$	208,612

A reconciliation of the federal income tax rate to the Company’s effective tax rate is as follows:


	December 31,		December 31,
	2020		2019

Statutory federal income tax rate	21.0	%	21.0	%
State taxes, net of federal tax benefit	4.9	%	0.0	%
Transaction costs allocable to warrant liabilities	0.0	%	5.3	%
Change in FV of warrant liabilities	(26.3)	%	(18.1)	%
Valuation allowance	(0.6)	%	0.0	%
Income tax provision	(1.0)	%	21.0	%

The Company’s net deferred tax assets are as follows:


	As of December 31,
	2020		2019
Deferred tax asset
Organizational costs/Startup expenses	$	122,876	$	—
Total deferred tax asset		122,876		—
Valuation allowance		(122,876)		—
Deferred tax asset, net of allowance	$	—	$	—

The provision (benefit) for income taxes is comprised of the following components:


	Year Ended September 30,
	2020		2019
Current Federal	$	—	$	—
State		—		—
Total current		—		—
Federal		2,048		2,196
State		500		969
Total deferred before valuation allowance		2,548		3,165
Change in valuation allowance		(2,548)		(3,165)
Total deferred expense, net of valuation allowance		—		—
Total income tax expense	$	—	$	—

The sources and tax effects of the differences are as follows:


	Year Ended September 30,
	2020		2019
Tax at federal statutory rate	(21.0)	%	(21.0)	%
State and local tax	(5.4)	%	(9.3)	%
Non-deductible stock compensation	0.3	%	0.3	%
Non-deductible expenses	0.7	%	0.7	%
Change in deferred tax rate	0.3	%	—	%
Change in valuation allowance	25.1	%	29.3	%
Effective tax rate	0.0	%	0.0	%

The Company’s deferred tax assets and (liabilities) consist of the following:


	As of September 30,
	2020		2019
Deferred tax assets/(liability):
Net operating loss carryforwards	$	9,769	$	7,339
Stock-based compensation		231		199
Amortization of intangibles		71		45
Deferred tax assets		10,071		7,583
Valuation allowance		(10,042)		(7,493)
Deferred tax assets, net of valuation allowance		29		90
Deferred tax liabilities:
Property and equipment		(29)		(90)
Tax deferred tax liabilities		(29)		(90)
Deferred tax liabilities, net of valuation allowance and deferred tax assets	$	—	$	—